Bitcoin’s price has been struggling to maintain its upward momentum, with the leading cryptocurrency hovering around the $67,824 mark and hitting an intra-day low of $66,600. This decline can be attributed to the release of robust US labor market and Services PMI data, which has reduced investor expectations of a September Fed rate cut and decreased demand for riskier assets.
Investors are now closely watching for upcoming comments from Fed officials, particularly Fed’s Waller, who is scheduled to speak on Friday. Any hawkish remarks could further weigh on Bitcoin. Additionally, upcoming US Durable Goods Orders and Michigan Consumer Sentiment Index reports will also play a role in influencing market sentiment.
Recently, the US dollar has strengthened due to positive economic data, which has decreased the likelihood of a Federal Reserve rate cut in September. This has put pressure on the crypto market, including Bitcoin. Atlanta Fed President Raphael Bostic has highlighted ongoing inflation concerns, suggesting that the Fed might maintain higher rates to avoid economic overheating.
On the regulatory front, recent changes in the US have sparked a bullish trend for Bitcoin. Congress members have urged the SEC to approve spot Ethereum (ETH) ETFs, and the passing of the FIT21 bill has clarified cryptocurrency regulations. Additionally, major Bitcoin holders, known as “whales,” have accumulated 20,000 BTC in the past week, totaling around $1.4 billion.
Overall, the strengthening US dollar and positive economic indicators have made crypto investments like Bitcoin less appealing due to higher opportunity costs. However, regulatory changes and positive developments in the US have boosted demand for Bitcoin, with significant accumulation by whales and substantial inflows into spot Bitcoin ETFs. The 4-hour chart indicates a pivot point at $68,263 for Bitcoin. Key resistance levels to monitor include $70,029, $71,458, and $73,299, while immediate support levels are at $66,357, $64,947, and $63,490. The Relative Strength Index (RSI) currently sits at 40, signaling Bitcoin’s approach towards oversold conditions. Additionally, the 50-day Exponential Moving Average (EMA) stands at $68,615, indicating a bearish trend as Bitcoin trades below this average. In summary, Bitcoin remains bearish below $68,250, with a potential shift to a bullish trend upon breaking this level. Conversely, a continued decline could lead to further losses in Bitcoin’s price.